According to the statement, the digital euro will make electronic payments an essential component of the financial system.
Spain’s central bank, Banco de España, has joined a chorus of European banks readying their clientele for the possible advantages of a digital euro. On October 19, the central bank released a brief statement outlining the characteristics and applications of the proposed digital currency of the European Union (CBDC).
“Does not allow to exploit all the advantages offered by the growing digitalization of the economy and society,” the bank asserts in reference to the physical cash format. But with the digital euro, electronic payments will become an essential component of the financial system.
The writers stress that the digital euro offers the same level of privacy as cash and highlight the possibility of making offline payments with it. Additionally, they express concern that users’ data on the online form will remain private and visible only to their financial institutions, not to Eurosystem, the company that provides the CBDC infrastructure.
The project calendar that is included in the text states that the current “preparation phase,” which began on October 18, will end by 2025. The decision to issue a pan-EU CBDC has not yet been made, though.
The same friendly attitude towards the digital euro was recently expressed by the Bank of Finland. Tuomas Välimäki, a board member, referred to it as “the most topical project” in the European payment industry.
The European Central Bank (ECB) posted a link to the landing page containing fundamental details about the digital euro on October 25. It claims to bring about a “stronger Europe” and a “easier life.”
The European Central Bank’s governing council declared earlier in October that the digital euro project’s “preparation phase” had begun. Its two-year duration will be devoted to deciding on potential issuers and finalising regulations for the digital currency.